Jubilee for Student Debt

October 2, 2018

There is a movement – in its very early stages – for a debt jubilee. You may not have heard of it, but it has some people very worried. And I think there’s a good chance it will come to pass. Soon.

This is the second of a series of articles on a continuing political phenomenon important to people with debt. The first article is “Occupy Wall Street.” The second article is Econ 101 or What Happens when the Bills Come Due.

What is a “Jubilee”?

A jubilee is the mass forgiveness of debt – a governmentally imposed wiping of the slate clean from all debt of any specific, or all, types of debt. You might think it could never happen here in the United States, but it has, historically, happened several times in various places. Never was it more appropriate than for student debt, in my opinion. Of course, other kinds of debt could also get thrown into the pot when things get going. Is it good? Is it likely? And if it happens, what will be the probable consequences?

Any talk of student loan jubilee should begin with what has happened in the past forty years. During that time, student loans have become not just popular, but essential for almost all students entering college or other formal, advanced education in the United States. In some countries in Europe, for example, schooling is free, but here it is expensive – very expensive. And it has been getting more so at a rate far exceeding the rate of inflation for the past forty years. This is because student loans, which had a noble publicly discussed purpose (making education available to all) had the unintended consequence of making education unaffordable to all. By relieving the price competition, it has allowed schools to increase tuition at a tremendous rate.

The schools and the banks have become filthy rich from the system. Student graduation rates have fallen, and average length of college has increased. And a whole generation of students have entered adult life with a crushing burden of debt.

Because of “special government protections,” bankruptcy is almost never any help to people with student debt. They declare bankruptcy and still end up paying everything they have for student loans that, all too often, were completely useless to them. Whatever you think of Trump’s tax cuts for the super-rich in 2017, the amount would have been enough to rid people of their student debt burdens, so it can be done. It’s just a question of who gets the money: the super rich 1%? Or the poverty stricken 99%?

This question is soon going to be coming to the fore.

Social Security is a Huge Issue

There’s another factor at play. The baby boomers – people born from roughly 1950 – 1965 – have plundered the resources of the past and future. They’ve given themselves tax cuts and embarked upon expensive wars while decimating the interest rates that allowed old people to live on their savings. And while guzzling the resources that could have given the young a start in life. Now they’re beginning to retire, assuming that Social Security will keep them in the comfort to which they are accustomed, for the rest of their long lives. When boomers started paying into Social Security, there were many workers per retiree, now there are less than half as many workers per retiree. Social Security is paid out of current tax revenues, so what that means is that the “surplus” people like to talk about for Social Security is an illusion – that surplus is made up of government bonds which are paid (or rolled forward to be paid later) out of current taxes. The millennials will be paying for the boomers’ retirement, if they choose to do so.

By election time in 2020, the baby boomers will no longer be the largest voting group in the country. Millennials will become the largest voting block, and they will be gaining electoral power for many years after that. It is going to occur to them that the boomers have pillaged their futures. It will occur to someone that the time is ripe for a jubilee to set thing straight. That person will find a passionate following of people who have never felt called-upon to vote. Politicians have pandered to the boomers for many years. They’ve ignored the millennials, and the millennials have ignored them.

That could change very suddenly. I think it will. Some people are in fact already talking about it.

What it Means

The change in electoral power and the likely shift in governmental focus could be huge. One could hope that the millennials will strive to set some priorities that the boomers never managed. In that scenario, student loans would be eliminated and free education installed (perhaps). Social Security would be managed in some way take care of the old without overburdening the young, and peace and harmony could descend forever and ever amen. Something has to change for that to happen, though. Either the super-rich will have to pay much more or the military, for example, will have to take much less. It could happen, but these are both deeply entrenched special interests with a lot of money and power.

An alternative scenario is less attractive but more likely. In that scenario, student debt is eliminated and there’s a lot of talk about cutting back on money to retirees and the military and of taxing the super-rich. What actually happens is more of what has been happening, though – the deficit balloons. The money is paid in depreciated dollars, and the debt is pushed down the line for the future to pay.

Eventually, that isn’t going to keep working.

Motions in Limine

September 24, 2018

Motions in Limine are pre-trial motions that serve a specific purpose. That is, they are motions designed to preview issues regarding whether certain evidence will be allowed (“admissible”) for the trial and under what circumstances it would or will be admitted. Typically, a court’s final pretrial order will set the time limit and schedule for motions in limine, but even if it doesn’t, you may want to file one.

Remember, they are filed in contemplation of trial – they are not a motion to file in some more general sense. If there is a motion for summary judgment, for example, you don’t file a motion in limine – you oppose the motion and object to the evidence in that motion. You would make all the same arguments, perhaps, but in a different context.

Remember that a court may, or may not, rule on a motion in limine before trial. The idea is to present the objection in a systematic way under conditions that allow the judge to think about it outside of the heat of the moment. It often happens that you’ll present a motion in limine and the judge won’t rule on it because the context of the trial isn’t clear until things start happening in trial. No matter. Make your best argument in the motion and argument and be prepared for whatever the judge does. Pay close attention to what the judge thinks matters regarding whether the evidence will be admitted, and be prepared to argue at trial that those conditions haven’t happened (so the evidence shouldn’t be admitted).

Finally, remember that any ruling by the judge before trial is not necessarily binding at trial. Thus, even if you lose your motion to exclude in limine, you will want to object at trial and take another shot at it. You’d be surprised how often the judge will change his mind. And that means you also have to be prepared for the other side to do the same – and you must remember that in order to preserve your rights you probably have to make your objections again at trial. So think of the motion in limine as a sort of warm up.

The Beginning of a Debt Lawsuit

July 25, 2018

Start of Suit

There are some issues more likely to come up early in the case than at other times. For help with this sort of issue, take a look at the videos and articles below.

Debt Collector Dirty Trick–to Trick You into Defaulting Video. Sometimes, for various reasons, a debt collector will tell you “not to worry” about answering the petition. This video tells you how to handle that.

Debt Law Is the Law of the Jungle! Article. Don’t be fooled. If you’re being sued, you’re in a contest, and they’re trying to eat you up.

The Importance of Early Discovery Article. If you’re being sued for debt, it will help you to get “off the blocks” quickly and begin the process of discovery. This article explains why that’s so important.

Is Defending Yourself Hard? Article. How hard is it to defend yourself? This article goes a little more in depth than the video on that question.

Is Defending Yourself Hard? Video. Basically the same as the article–if you prefer to learn in video.

Defend Yourself, Protect What’s Yours Video. You have an excellent chance to win if you defend yourself. This video tells you why and gets you started.

Pro Se Defense Video. Some pros and cons about defending yourself in court when you’re sued for debt.

Settling with the Debt Collector Article. Settlement can be either victory, defeat or compromise. Before you settle at any point in the suit, you should read this article.

What if I Really Owe the Money? Video. What if you owe the money? Should you just pay it? or fight? This video tells you why you must defend yourself or run the risk of paying twice. And if you fight, you may not have to pay at all.

What’s Your Case Worth to a Debt Collector? Article. How Does a Debt Collector Decide How Much Your Case Is Worth?

What to Expect the First Day Article. If you’re being sued, you probably need to go to court even if you answer the petition. Here’s what to expect when you get there.

Why Don’t the Debt Collectors Just Give Up? Video. If your defending yourself makes suing you so unprofitable, why don’t they just give up when you file your answer?

Stating Attorney Fees in Petition – Probably FDCPA Violation

July 25, 2018

It used to be common for debt collectors to name a specific amount of attorney’s fees in their Petition when suing on a debt. In other words, there will be an amount stated (specified) as reasonable attorney’s fees and sought as part of the debt in the “wherefore” clause of the Petition. The question is, does this violate the Fair Debt Collection Practices Act (FDCPA)? The answer seems to be “yes” if the petition sues for a specific amount for attorney’s fees. If the company represents that you agreed to any specific amount of fees it is probably a violation of the FDCPA if the contract on which they’re suing provides for “reasonable attorney’s fees.”

That’s because you theoretically agreed to “reasonable” fees (as eventually determined by the court) rather than some liquidated amount.

As a result of some of the “blowback” in the form of counterclaims, many lawsuits never ask for attorney’s fees at all. But if yours does, and they ask for a specific amount, it could violate the FDCPA. Of note is how stringently the courts sometimes read the FDCPA in favor of consumers.

Common in Contracts

Many credit agreements include a section allowing the creditor to collect its “reasonable attorney’s fees” in the event of a default, and on the face of it this is perfectly reasonable. If a consumer fails to make payments, someone is going to have to pay an attorney – the reasonable fees section puts that burden on the person allegedly causing the problems. Like most laws, it’s tough on people without much money, but if someone has to pay (and someone always has to pay the lawyers), then it makes sense that the person breaking the agreement should do it. Or at least that is one reasonable type of agreement.

How it Shows up in the Petition

The way this often plays out, though, is that, after default and sale of the debt (obviously, the right to collect is what is being sold) to a debt collector, the debt collector will often bring suit for a specific amount. The petition will allege the right to attorney’s fees and then, in the “wherefore clause” will state something like this:

Wherefore, plaintiff requests $1,000 as the principle sum owed, plus interest at a rate of 29% from January 3, 2007 ($775 as of the date of filing), plus $450 reasonable attorney fees, plus costs and interest dating from the date of judgment.

I am using round numbers to suggest an attorney’s fee of 25% of the amount sought, and that is not an unusual amount sought as attorney’s fees.

The debt collector will often back up this request for fees with an affidavit stating that the amount named was “its attorney’s fees expended” or simply that the amount is for “fees as provided by contract,” or the like.

Violation of the FDCPA

This language violates the FDCPA because it wrongly suggests that the consumer agreed to a specific amount as an attorney’s fee – and that almost never happens (in the case we’re looking at, the right was to “reasonable attorney’s fees”). Where the right is to “reasonable attorney’s fees,” a debt collector violates the FDCPA by liquidating that amount (turning it into a specific dollar amount) and seeking that amount as if that was what had been agreed. The case you will want to use and to know if you have this situation is Stolicker v. Muller, Case No. cv-00733-RHB Document 61, Filed 09/09/2005, Bell, J, U.S.D.C. W.MI)(granting summary judgment to the consumers in a class action lawsuit on this issue). Note that the court found that seeking attorney’s fees in this way – by including a liquidated amount in the wherefore clause “altered the contract she signed with [the original creditor]… and violated the FDCPA. It specifically violated Section 1692e(2)(A),(B) (a false representation of the character or amount of a debt or the false representation of the …compensation which may be lawfully received); 1692e(10) (using a false representation to collect or attempt to collect a debt) and 1692f(1) (collecting any amount unless such amount is expressly authorized by the agreement creating the debt or permitted by law.”

Is There a Moral Duty to Pay Debt Collectors

July 25, 2018

Debt and Moral Duty

Debt collectors and bankers, and their minions, like to talk about the “moral” duty to pay your debts. Is there one? And if so, does it extend to paying bankers and debt collectors? You’ll have to decide for yourself, of course, but I don’t think it’s the clear issue the debt collectors want you to think it is. Regarding paying a debt owned by a debt collector, I think there is no moral duty at all.

Debts and Morality

First let’s consider the broader question: is there a moral duty to pay your debts? Creditors like to say so, of course, but are they really impartial? Of course not. Their invoking a moral duty is highly self-serving.

Commercial Loans and Interest Rates

First let’s look at what a loan is, as it has come to be meant in modern times with credit cards. Credit cards in essence involve a loan – at an extremely high rate of interest: the issuing bank “lends” you the money to pay a merchant for some service. Interest payments on loans are supposed to cover two things: risk of nonpayment and the loss of the present use of the money. In other words, interest payments are designed to cover the fact that you’re giving the money back later (called “discounting” for time) and the risk that you won’t pay it back at all.

The way you discount for time is easy. You look at the inflation rate, taking a guess as to whether it will continue or not. The present inflation rate is somewhere between one and four percent, and the banks are, in any event, borrowing the money from the Federal Reserve for much less than one percent. That means that almost the entire interest rate either provides the banks an obscene rate of profit or pays for a risk of loss of approximately 30%. It also means that loans are business propositions which contemplate a very significant risk of loss (much higher than the actual loss would justify) – a risk that is paid for by the borrower on every loan that is repaid.

Any loss on a loan is more than adequately repaid by this premium on other loans to people with the same credit standing. I don’t see a moral duty to repay there, do you?

Non-Commercial Loans are Different

Notice that I am not addressing loans made for personal friendship, for example, where the risk is not compensated and offset by the interest rate. I see these as completely different and believe there is a moral duty to pay back someone who actually takes a risk on your integrity. But that is certainly not credit cards or other arrangements where you pay an interest rate higher than the rate of inflation.

Does the Law Imply a Moral Duty to Repay?

Is there a “moral” duty to repay a loan implied in the law? Really, not very much.

There are things that are considered legally “bad,” and these things are called “torts.” Assault, theft, and a variety of other things are torts, and the main thing they have in common (besides many of them actually being criminal offenses as well as “civil” torts) is that if you prove them, you are entitled to “punitive” damages or some sort of statutory “penalty.” That is, if someone commits a tort against you, the law lets you actually try to punish them (which is the point of punitive damages or statutory penalties).

For plain breach of contract cases (like not paying a bill), there are no punitive damages or penalties – only the money actually lost. In formulating this policy over the centuries, the courts have actually pointed to the beneficial effects of allowing breaches of contract. Not punishing breach of contract encourages people to act in more efficient ways, although to be fair avoiding payment may not be completely within this concept. There are some indications that the law recognizes a moral obligation to pay, although it has very little actual legal force.

Usury – Is THAT Immoral?

In ancient days throughout the Christian world, and even now in some Islamic law, charging interest on any loan was considered immoral. Most states – even now – have laws against “usury,” which is charging more than a certain amount of interest. It might interest you to know that the prevailing interest rates charged by credit card companies would violate those laws in most states. Ever wonder why credit cards always have their financial centers in just a few states? It is the way that they evade the usury laws. Because while states can control the interest rates local concerns charge, the courts have held that credit cards are “interstate commerce” and cannot be controled by the individual states. Only the laws of the state in which the credit card issuer is located can set that rate. Thus the interest rates charged by most credit cards, most of the time, could be considered immoral or illegal from some points of view.

That doesn’t seem to bother the banks or debt collectors one bit.

How about Business Bankruptcies?

What about when large businesses go “bankrupt?” For them it mostly means that they get to trash their commitments to workers and their pensions. Ever hear anybody howl about “moral” duties? No. The talking heads all line up to discuss how tough business is, or whatever, but there is never any real moral pressure brought to bear on these companies. Of course that would be pointless: it’s just business, right?

And of course in this day of bailouts, the banks don’t even have to go through the farce of bankruptcy. They get their money basically free from the federal reserve and use it to speculate or lend it to individuals at rates as high as 30% or more – and when that isn’t good enough to fund their bonuses, they get huge amounts of money in other ways from the government. You know who pays for that, right?

Is There a Moral Duty to Pay Debt Collectors?

As I have pointed out elsewhere, you might consider that you have a moral obligation to pay a business that extends you credit, although I do not believe that is a powerful obligation. What about to debt collectors? In their case, I do not believe there is any duty at all. Where does the duty towards a merchant that extends you credit arise? surely it is from the faith in you that the action of lending you money implies. The merchant extends credit to you as part of an overall relationship which in some cases is quite personal, but in every case is based on a mutual expectation that you will pay the money back. None of that is going on when debt collectors own the debt.

By the time the debt collector owns the debt, the original creditor has lost all the money it is going to lose – and you can believe that the debt collector bargained hard against it to pay as little as possible for it. If you pay the debt collector you do not improve the merchant’s situation at all – you simply give the debt collector a windfall profit. And the debt collector purchased the debt knowing you were struggling financially – their intention was never to help you at all or do you any good at all. Instead, a debt collector exists to squeeze, punish and ultimately sue you in an attempt to force you to pay. I see no moral duty to pay at all, although I emphasize that there is still a legal duty if they can prove it in court. My point is that nothing should hold you back from giving it your best not to pay.

Conclusion

I won’t say that morality is for suckers (although the bankers would), but what I do say is pay attention to your own needs and interests – and look carefully at anybody who criticizes you for taking care of yourself. The moral talk by debt collectors and their servants is simply a gimmick to get you to pay.

Jurisdictional Issues in Debt Law

July 24, 2018

Kicking the Debt Collectors out of Court

– Jurisdictional Issues in Debt Law

Kicking the Debt Collectors out of Court

– Jurisdictional Issues in Debt Law

We discussed two kinds of jurisdictional issues in a recent teleconference – two different issues that call for very different responses.

In this video we’ll discuss what happens when the debt collector doesn’t show its ownership of the debt and when you are not properly served with the lawsuit.

Ownership of the Debt

When debt buyers bring a lawsuit, their ownership of the debt is always in question. It won’t be their name on the debt instrument or contract, and they will have purchased the debt – gotten it on “assignment.”

There is nothing wrong with that, let me emphasize. Most debts are freely transferrable (unless either a contract or law says they can’t be transferred) – so in most cases this will not be an issue. But what is an issue is proof of ownership. Only the true owner of a debt is permitted to bring a lawsuit. In a way that’s a no-brainer, isn’t it? If I happen to hear that someone owes you money, I can’t sue them for it can I?
No – if I want to sue, I must prove that I am the “true party in interest.”

Without the true party in interest’s participation, the court does not really have jurisdiction over the subject matter of the case. If I bring suit on a debt someone else owes you, and that person gets around to pointing out that I don’t own the debt, the case should be dismissed immediately – without prejudice. If the person being sued does show that the plaintiff cannot prove ownership, the proper response by the court is to dismiss immediately without taking any other action – it can’t make a judgment about the validity of the debt without the real owner being present.

You can attack ownership of the debt at any time, and in a debt case you should always contest the issue not only because you might win, but also because debt collectors actually try to collect debts that don’t belong to them fairly often. You should always make them prove it.

In the case of the big junk debt buyers, they often will have a so-called “bill of sale” between the original creditor and the junk debt buyer. It will say that the creditor is selling and assigning umpteen million dollars worth of debts to the debt collector. It will mention an attachment with the numbers of the accounts sold.

And it will often not have that attachment or anything else linking your account to that sale. That is inadequate proof of ownership. It is no proof
of ownership. If you attack the case on that basis it should be dismissed – unless the debt collector can supply the information. For some reason,
they often cannot.

You can make this argument at any time.It isn’t waived by you participating in the case. Any time you can prove the debt ownership isn’t
established, the case should go away.

Sewer Service

Sewer service is different. In this situation, the process server threw the summons into the ditch while the defendant was watching and then swore to having given the summons to the defendant. In that situation, the defendant is forced into a choice: attack the court’s jurisdiction immediately by motion to quash, wait and attack jurisdiction, or defend. If you take actions to defend on the merits of the case – you say you don’t owe the money – you will likely be “waiving” or letting go your attack on the court’s jurisdiction.

Letter to People being Sued for Debt

July 23, 2018

Could Anything Actually Make You Glad to Get Sued by Debt Collectors?!

Dear Harassed Consumer,

It’s hard to believe that could happen, isn’t it – that you could actually end up glad you got sued by a debt collector? And yet it could true.

If you’re being sued by a debt collector, chances are it’s coming at the end of a long process that started with missed bills, phone calls, letters, messed up credit reports, worry, and missed sleep at night. I don’t need to tell you how awful it is. And the lawsuit itself may seem like a nightmare. After all, if you lose, you could face new problems: garnishment of wages, seizure of bank accounts, and possibly even worse.

And you can forget about your credit report if they get a judgment, right?

That all sounds bad, and it IS what happens to most people being sued. But it doesn’t have to happen to you.

So How Could Getting Sued Possibly Be Good News?

Simple. You could win. And you should win most of the time.

It seems hard to believe, but the lawsuit could actually be the end of your trouble. That’s because the debt collectors almost always start their lawsuit without what they need to win, and without being able or willing to get what they need to win. If you fight back intelligently, that may give you a chance to erase your debt for good. In the process, you can take control of your life again.

What if you could make the debt that’s hung over you go away? Imagine how you’ll feel when you drive the debt collector away and erase the debt. You can start repairing your credit report and get back to your life. You can answer your phone without worrying about debt collectors

Finally.

It’s even better than that, though. Here’s what one user of our litigation services said about his experience:

Today I received in the mail an offer “Stipulation For Dismissal With Prejudice”,which basically states the Plaintiff will dismiss their Complaint if I dismiss my counterclaim. All the examples,logic and powerful arguments presented in your materials helped me beyond belief! I am eternally grateful,and right now quite ecstatic!

Thanks Ken,
Frank from Arizona

And another:

Just a quick email to say THANK YOU for your well written manual! I was scared to death when I got a Summons and Complaint served on me by a debt collection attorne. I did exactly what you said though, and basically let them know I wasn’t going away.… So I filed a Motion to Dismiss, and that was pretty much it. The Attorney folded like a cheap suit, and I have to say it almost felt better than sex!

Thanks again!
Gary

These people, and many more, could tell you the same thing: you can beat the debt collectors. And when you do, it will feel even better than you would ever guess. It will change your life. They’ll never push you around again. You’ll never be scared of debt collectors and their lawyers again.

And it won’t cost you a fortune, either.

You can do it all with our litigation products. Memberships with us give you the help you need to take control and win against most debt collectors.

Now, I should point out that we’re not talking about magic here, no “secret” tricks, no voodoo. We’re talking about using the rules to slip through the gaping holes in the debt collectors’ nets. See, if you could win 90 percent of the time without spending anything, and 91 percent of the time if you spent a bunch on all your lawsuits, would it make sense to spend anything? It doesn’t, and they don’t. Almost always. If you get the rare case where they have what they need and are willing to spend the money to pursue the case right, they will probably win. Or force you to settle the case, although if you settle it will be for much less than most people, even then.

But they almost never have what they need or the willingness to fight if you do it right. And that’s what we show you how to do.

I Don’t Want to Tell You You Can Just Get Away with It (But You Probably Can)

I don’t want to tell you you can rack up debt and get away without paying, because we should all pay our debts. But these are tough times, and sometimes things happen that make it impossible to pay.

And sometimes those things are the fault of the banks.

If you’re having trouble with credit cards, not having to pay would be poetic justice.

Not only have they siphoned away huge amounts of public money through the infamous “bailouts,” ensuring that you and your children will be taxed for decades to keep the banking fat-cats in their fancy cars and expensive mansions. But these same people have set you up for failure, offering you way more credit than you could ever pay off. Sure you should have known, maybe, but they’re paid to know, and they did know. They deliberately set you up to borrow more money than you could pay back…so that you’d be stuck with ridiculous interest rates and ruinous fees. They wanted it to happen, and they made it happen. Now they’re trying to drive you into the ground.

If they’re after you, the only way you can get them to stop is make them stop. Our materials give you what you need to do that.

Occupy Wall Street and Debt Jubilee

July 23, 2018

This article was originally written only about the Occupy Wall Street when that was a “thing.” For an instant in time, it looked like people might look up and notice the huge shift in wealth from the poor and working classes to the rich. And from the young generation (Millennials as they’re now called) to the Baby Boomers That moment has passed but the issues remain, and a large-scale disruption seems inevitable. The student loan picture has grown much worse, and combined with health care and retirement issues, might well bring on an inter-generational conflict of massive proportions.

I think it will likely take the form of a “debt jubilee.” And this, along with other economic policies, will have consequences.

Occupy Wall Street – The Beginnings of a Serious Movement

As always, I’m a little cautious when I bring an “outside” issue into the discussion of defending yourself from a lawsuit brought by a debt collector. But there are links: there is increasing resistance to the status quo of banks and debt collectors using the legal system to take things away from people without a lot of money. So far, this resistance hasn’t accomplished much (if anything) on the broader political scene, but it is beginning to create an energy that may affect what litigants and judges will do. It may also radically change the whole debt legal landscape.

And that brings the discussion within the legitimate scope of my analysis.

Here’s what I wrote about Occupy Wall Street, and then there’s a link to an article about debt jubilees.

Occupy Wall Street Is Just Getting Started

I am very happy to see the demonstrations. As I have mentioned before, there is certainly a “class war” going on, but that war is not in the words of the fringe politicians. It is in the actions of the political decision-makers, who have transferred trillions of dollars to the wealthiest people (by and large, these are the people who own the banks) through the bailouts and other policies. It is the working and middle class people who are and have been under fire. They pay the price of the bailouts to the rich, and they are the ones being sued for debt more than anybody else, who are losing their homes and groaning under big credit card balances with outrageous rates of interest.

They should be mad. Occupy Wall Street has started, like so many other social movements, among the young, but it is showing some signs of attracting the working and middle classes. There’s smoke. Will there be fire? I think that possibility certainly exists, and the persistence of the “occupation” has been impressive.

The Occupiers’ Message

It isn’t that I think the demands of Occupy Wall Street are coherent at this point. I haven’t been able to make out any sort of specific, consistent message from the things they have written, or that have been written about them. But that said, I do believe that they have a point. They know they’ve been screwed –they just don’t know how. Yet.

“Green Tea Party”

Last year I called for a “Green Tea Party.” Although the name was a little tongue-in-cheek, the thoughts behind it were quite serious. The Tea Party, with its calls for “smaller government” (but apparently without wanting to reduce American military adventurism around the globe or subsidies for corporations and other traditionally right wing interests) captures the imaginations and hopes of a lot of people who feel disenchanted by politicians. Occupy Wall Street, with their opposition to bailouts for the wealthy and other corporate “help” (but apparently with some faith in the trustworthiness and goodness of government), really are a sort of mirror image of the Tea Party.

There is a lot of antagonism between the two groups right now, but they both, actually, seem to want the same thing. Both groups want a world where people have a chance to survive and get ahead in life. Each identifies one side of the coin as the problem. And the coin is that we have a ruling class that uses government as a tool -to take money from the lower and middle classes and give it to the rich, and to expand their reach and power through the world.

A Combined Populist Movement

What would happen if Occupy Wall Street came, as many progressive organizations did during the Great Depression, to view big government as the problem rather than the solution? What would happen if the Tea Party, as Ron Paul clearly does, came to see the assertion of U.S. military power around the world as a form of big government opposed to personal freedom? or corporate bailouts as contrary to free market enterprise?

Then the Tea Party and Occupy Wall Street might come together with some real populist power. It would never be called the “Green Tea Party,” of course, but it might be called “The New America” movement or something like that. Something that might capture the urgent need for our country to move back towards real democracy, away from the on-going siphoning of resources to the wealthy, and away from the constantly expanding government that makes that possible.

Public Response

The response to both the Tea Party and Occupy Wall Street has been “instructive.” It’s actually very similar to the initial response to “Arab Spring,” the movement which has toppled dictators in the Middle East and continues to reshape politics over there. The financial press ignored Occupy Wall Street as long as possible, and since then have been, almost uniformly, contemptuous or patronizing. Politicians have either ignored the group or tried to co-opt them. And the police response has mirrored what we saw in the Middle East out of the dictators: brutal and arrogant.

Meanwhile, more and more people are gravitating towards the marchers.

There has been criticism of the Tea Party that they were, in fact, co-opted by the Republican Party, and I think that is partially true. It has been a platform for the anti-intellectual side of the party, no doubt. But this co-optation is certainly not complete, as the Tea Party candidates have shown that they do have their own agenda that is not always under the control of the rest of the party. If the Tea Party and Occupy Wall Street could somehow see beyond their differences and develop the broad common ground they share, the resulting movement would, I believe, be beyond the power of either political party to co-opt.

Now a new phase of this movement is beginning – a call for “debt jubilee,” where student loans will simply be wiped off the books. How will this happen and what will it do? Click here for article on Debt Jubilee. The movement will dramatically affect everything in the U.S., from schooling to Social Security and beyond. And there will be consequences.

They Laughed at Me but Then

July 22, 2018

The Debt Collectors Laughed at Me

When I Said “Here!” in Court

But When I Gave Them My Answer …

It looked like a typical day at court – – the debt collection lawyers were circling the table in front of the judge like vultures flying around some unfortunate animal on its last legs. There must have been ten –maybe fifteen—of them, and each time the judge called out a defendant’s name – – “Smith!… Jones!… Williams!… Thompson!…”- – there was silence, and then one of the lawyers would say in a bored voice, “Call for default.” And the judge said, “Default.”

– – Just like that, the debt collectors had their judgments, and as soon as that court session was over, they were going down to start the garnishment process. Start taking some poor guy’s paycheck.

The judge must have given the debt collectors fifty defaults before they reached my name, and it looked like there were more than a hundred more to go after me.

“Westmore!” the judge called out.

“Here!” I said.

In the shocked silence that followed I heard someone laugh. And I could see people nudging each other with their elbows. “What’s he doing?” one woman whispered, just loud enough for me to hear. I heard someone snicker. “Just a regular guy,” someone else said. “They’ll eat his lunch!” The debt collection lawyers smirked among themselves. That’s what they thought, too. No one EVER fights back.

Then I handed the Court My Answer

I walked up to the court clerk and handed her my Answer to the Petition.

It looked good.

Sharp and professional.

And it had a counterclaim. She raised her eyebrow with a new respect as she took the document and entered it onto the record. The vultures got strangely quiet and looked away when I dropped off a copy of my Answer and Counterclaim with the debt collection lawyer (I’ll call him “Mr. Nice Guy”) who had raised his hand on my way back to my seat.

The people who had been laughing at me could feel the change that had come over the court room. They got quiet, and I could sense their new respect.

They smiled and moved over to make room for me when I wanted to sit back down. Mr. Nice Guy was still smirking when he took the documents I handed him, but the smile started to fade when he noticed the counterclaim. And it was ancient history by the time he noticed I’d attached interrogatories, requests for admissions, and requests for documents to my Answer and Counterclaim.

He knew he was in for a fight. He knew it was going to cost him. He knew he was going to lose money if he kept after me. And he knew he might lose the case. He had come expecting a patsy—all those vultures had, you could see that just by looking at their smooth, scornful faces. I doubt if a single one of those lawyers ever did a day’s worth of real work in their lives!

Well, he’d run into a buzz saw this time.

A Complete Success!

Two days later I received a letter that said:

Dear Mr. James Westmore, My client has agreed to offer to settle our cases against each other as a mutual dismissal with prejudice. If that is acceptable to you, please sign the attached stipulation for dismissal of the lawsuits the parties have against each other and return them to me for filing.

Sincerely,
Mr. Nice Guy

I decided to let the debt collector go. I could have said “no” and tried to make him pay me something to get out of it (I think I had him cold), but… who wants to spend the rest of his life in court if you don’t have to?

It was as easy as that, although I know it isn’t always that easy – not by a long shot. Still, when you start fighting everything is leaning your way. It’s just that no one knows it.

I suddenly had a whole new life in front of me. So I made a quick call to the lawyer and said his offer was acceptable to me…if they would cancel the debt I supposedly owed and revoke any damage they had done to my credit report.

After a pause, Mr. Nice Guy gave in. So I wrote that right into the stipulation of dismissal, signed and sent it back to “Mr. Nice Guy & Associates.”

It was over. Just like that, a $7,000 credit card bill that debt collectors had harassed me about for three years was gone. And all the reports they had made to the credit agencies were gone with them.

How I Learned to Protect Myself in Court

Just by chance, I bumped into one of the “bystanders” who had seen me say “Here!” on that fateful day in court. He wanted to know how it had turned out for me.

When I told him, he asked me if I was a lawyer or “knew” somebody!

He was shocked when I told him that the only thing I knew about the law was stuff I had learned from YourLegalLegUp – a business that gives regular people everything they need to defeat the debt collectors. I told him how I’d learned all about the debt collectors and how they usually didn’t have what they needed to win their lawsuits. I told him I’d even gotten the forms I needed, too – “just a few easy changes was all I needed to make!”

“Wow,” he said. “It cost me over $1500 to hire a lawyer. And he didn’t even get my credit report changed!”

I was almost embarrassed to say how little it cost me to defend myself.

Look in the Mirror – What Do You See?

These days, when I look in a mirror I see a winner looking back. You won’t believe how much that is worth.

Before the debt collector sued me, back when they were just calling me every day, I got so that I hated to hear the phone ring. To tell the truth, there were many times I just couldn’t answer the phone at all. If an old high school friend tried to reach me, and I didn’t recognize his phone number, well, that was too bad. I missed the call. I wouldn’t answer the doorbell, either, unless I was expecting someone.

It’s hard to be a good friend or neighbor if you dread answering the phone, you know? It’s also hard to be a good neighbor if you’re afraid to answer the door when the doorbell rings or walk outside on the porch on a nice night when other people are out there.

And after a while it can be hard to look yourself in the mirror.

That’s all changed for me now, though. Now I like what I see, and you can too.

Why’d I Do It?

I won’t kid you – – it was scary to stand up and say “Here!” that first time. It was a little embarrassing to have all those people looking at me – – even though I’d never met them before and didn’t expect to meet them again. So why would I care what they thought? I cared because I’m like most people. We do care. I didn’t want to be the center of attention and didn’t want to be laughed at or pitied or scorned by strangers. That’s human nature.

I did it, though, because I was fed up. I was sick and tired of those debt collectors and their nasty voices. Sick of their contemptuous looks. Tired of being bullied and threatened by some anonymous punk on the phone. Plus I didn’t have the money to hire a lawyer –or to lose the case, either.

And I was fed up with feeling hopeless and pushed around.

It Changed My Life

And now that I’ve done it, it’s changed my point of view completely. The whole world looks and feels different to me in ways I never would have believed. I look in the mirror and like what I see again because I know I’m the guy – – yeah, that guy right there in the mirror!- – that’s the only one who stood up in court and said “Here!” that day.

I’m the one who fought back.

And I’m the one who won’t have to hear from the debt collectors any more or try to scrounge every cent I possibly can to keep the wolves away from the door. That’s me! It feels great to know I was brave enough to do what it took. No one will ever take that feeling away from me again.

To tell you the truth, the whole thing was absurdly easy. (The work was all in my head.) I spent a few hours reading the Manual, a few hours watching videos, and an hour or two putting together the documents I gave the court. The lawsuit was for about $7,000, so I figure I “made” about $1,000 per hour defending myself. It’s better than what I usually get at my job, let me tell you!

Other people sometimes have to do much more, but once you start fighting things should go your way. That’s because they really usually don’t have what they need and everything you do makes them spend $200 per hour fighting you. That’s money they know they might never get back even if they win because they don’t know if they’ll ever be able to collect it. It’s sweet.

I like what I see when I look in the mirror now, and I feel good about answering the phone or the door.

It’s the little things in life that are so big, isn’t it? Now I’m a good friend and neighbor again. I hold my head up when I’m out in public. Little things that are so huge.

I’m a new man!

My wife has certainly noticed the difference. Not only do we both have a sense of security we’d been missing for so long, but she also says she’d about lost the man she fell in love with. And she lets me know she’s glad I’m back every night! It’s like a second honeymoon.

………………………………………………………………………………………………….

Defend Yourself from the Debt Collectors

– Protect What’s Yours

You too can defend yourself from the debt collectors. You can have the good feelings “Jim Westmore” has. The above is a fictitious letter, but it’s drawn from the things real people have written to me many times. The results are not fictional.

Let me share just a few of the things some real people have said in their own words –and I’ve never paid, or even asked, for any of these testimonials. Notice the confidence and joy in every word they say.

Thanks for your work, Kenneth, I believe you have done a great job creating yourlegallegup.com. It helps in many ways, not only I fought against unfair debt collectors, but also I was educating myself.

I went through your work and crafted it to fit my case circumstances. Your “legal bundle” gave me ideas and the direction I should follow and, together with research skills, it made great power in defending the case.

One more thing. I’ve got the letter from the lawyers last night. The letter is addressed to the court and it says it is plaintiff’s “voluntary dismissal…”

Yes, it works. Yes, it wins. I appreciate you sharing your great knowledge.

Thanks, Andrew, Georgia

Hi Ken,

You have GREAT videos!! There’s something about seeing the videos and hearing your voice that makes the material all the more easy to absorb!
Thanks again for your continued support and help!! 🙂 Christine, Michigan

Ken, Just a quick email to say THANK YOU for your well-written manual! I was scared to death when I got a summons and complaint served on me by a debt collection attorney. I did exactly what you said, though, and basically let them know I wasn’t going away….and that was pretty much it. The attorney folded like a cheap suit, and I have to say it almost felt better than sex!

Thanks again,

Gary, Ohio

I settled and it was a victory on my terms! Thank you for the manual and working with me thru my emotions and getting me to the end….I waited to respond to until I saw for myself….It works to fightback! THANK YOU …THANK YOU…Ken.

I saved several thousand dollars….money well spent on the manual….

Olivia, California

Again Thank you very much for all your great advice-hints. I wont keep messaging you because I know you have a life over there too! But again Thank you so very much. If you make it out to Seattle let me know. Star bucks is definitely on me as well as dinner.

And I’m serious.

Kevin, Seattle

Today I received in the mail an offer “Stipulation For Dismissal With Prejudice”,which basically states the Plaintiff will dismiss their Complaint if I dismiss my counterclaim.

Its a done deal. Over five thousand dollars just like that!

Your litigation materials were clear, vital and necessary tools for me to win. All the examples,logic and powerful arguments presented in your materials helped me beyond belief! I am eternally grateful,and right now quite ecstatic!

Your materials are simply the best and finest of its type anywhere for pro se defendants facing debt lawsuits!

Thanks Ken,

Frank, Arizona

The great thing about your materials is that they take away the fear of going to court. I can never thank you enough for that!

Thank you from the bottom of my heart!

Barbara, Maine

The Secret of Their Success

As anybody who knows me or has visited our site (Your Legal Leg Up) can see, we have devoted a great deal of blood, sweat and tears to helping ordinary people stand up to the debt collectors. As a former attorney who represented hundreds of people being sued by debt collectors, I know what it’s like to be harassed and sued, and I know what it takes to fight back. We have written dozens of articles, several full length books, and created over a hundred videos on defending yourself from debt collectors.

What makes it work, though, is actually very simple. Here’s the “secret.”

Debt collectors usually don’t have what they need to win a lawsuit from you when they file suit against you… And they usually can’t get what they need without spending more than the lawsuit is worth… if you fight back with knowledge and determination.

It isn’t hard! The main battle is in your head. Once you get used to the idea of speaking to the lawyers and the judge, once you see that they’re just people who don’t usually have to work very hard and who really don’t like to work hard, you’ll have all the advantages in your case.

The debt collectors win about 80 to 90 percent of their cases without a fight. If you convince them that you know how to fight and that you will fight – – to the bitter end if need be – – they’d rather leave you alone. That’s the secret.

Our materials tell you what you need to know so that you can fight back. And we’re there to encourage you to do it when things seem a little scary so that you will fight back.

You’ll Deserve the Credit!

We offer our help. Our materials will inform you and give you the tools… but in the end the victory is yours. And you will deserve the pride you feel when you look in the mirror. And the peace of mind that comes from knowing that debt collectors will never push you around again. Because you are part of that very exclusive club of people who will actually stand up and fight.

You’ll deserve all the credit and peace of mind you earn for yourself.

And you will see the world differently – we guarantee it.

Our Materials are Guaranteed

If you’re being sued (or being pursued) by a debt collector and get our materials… we like your chances of winning –they’re great!– but we can’t guarantee you will win or that they’ll take the settlement you offer. Sometimes the debt collectors can get what they need and are willing to spend what it takes to get you even though it means they will lose money. That’s just life. What we can and do guarantee, though, is that you will be satisfied with the materials and the service you get, or you can have your money back. We wouldn’t want it. We also guarantee that if you decide to settle your case (instead of going all the way to trial), you will save at least twice what the materials cost you. Probably much much more.

One customer decided to pay the debt collector $500 rather than fight to the very end. But he had been sued for $12,000. And he made them clear his credit report.

We thought he would win the case –maybe make them pay him something—but he decided he had better things to do. If you ever feel the same way—that you’ll do better in your life if you settle for a small fraction of what they claim you owe—you’ll get a settlement offer that saves you at least twice what you paid for the materials—or you get your money back from us.

We’ll take that risk. Gladly. That way you don’t risk anything on the materials.

Now you just need to move quickly. And that’s mainly because if they’re suing you – or about to sue you – you don’t have time to waste.

If They Never Have Evidence Why Do Discovery

July 22, 2018

People ask me why they should do discovery in debt cases when everybody knows the debt collectors don’t have any evidence. The answer to that question might seem obvious once you’ve been around, but it’s a critical part of defending yourself from the debt collectors.

As we point out in The Most Dangerous Myth, you can’t depend on anybody to do anything for you. You can’t depend on the courts to get rid of debt cases that don’t have evidence. If they did that, they’d get rid of most of them, but that isn’t their job. It’s going to be up to you.

There are a couple of fundamental reasons to do discovery as soon as possible. You have to make them show you what they have or admit what they don’t have. And the process of discovery costs the debt collectors money and often drives them away by itself. In addition, conducting discovery will likely make the judge and the other side take you more seriously and be more cooperative when you need it.

Make them Admit what they Have or Don’t Have

The first, legally-based reason, for pushing discovery despite all their objections and BS is that to win the case you must PROVE they have nothing. Or rather, you must prove that what they have, if anything, is not enough for them to win.

Ideally you could do that by motion for summary judgment, which would spare you the risk and effort of trial.

If you can’t do that, then you must prepare to win at trial.

On the other hand if they do have things, you need to know about it so you can prepare for them.

Now, to be clear, debt collectors, who are always represented by lawyers (they have to be), start with the advantage of the court’s attention and respect. You, on the other hand, as a non-lawyer, will have to earn the court’s respect. Maybe it’s not fair, but that’s just the way it is.

And one result of this is that you simply cannot count on the court to pay close enough attention to any arguments you make unless you give it time. A motion for summary judgment – win or lose – is the best way to present your arguments about the debt collector’s evidence to the court.

In order to do that, you must know, in detail, what that evidence is and where it comes from.

Discovery is Expensive for Debt Collectors

The debt collector is almost certainly going to object to every single request or interrogatory you give it. They can’t help themselves, and it’s usually a good tactic because it drives so many defendants into submission. But it’s a two-edged sword, and when you’re pro se and determined, their objections will be a large advantage for you.

Part of filing a motion to compel answers is an “informal conference” and attempt to negotiate discovery disputes. You will have to call the other side’s lawyer up, ask him or her why she objects to each item of discovery, tell her why you want it, and argue each objection. And their objections will be numerous, absurd, and repetitive. They’ll object, for example, to your request for information about the alleged purchase of your debt on the basis of attorney-client privilege. In all likelihood no lawyer will have been involved – or it will be strictly in an arms-length transaction where no attorney-client privilege ever applies. And they’ll make many other absurd arguments.

Take your time. Take their time. And know that it’s costing them about $200 per hour for you to do so.

Find out whether they actually have anything they aren’t giving you. If they say they don’t, then once you confirm the message you’ll have what you need for the summary judgment motion. If they say they do, keep fighting until you know exactly what it is. Again, all this is costing them a LOT of money.

And nothing makes a debt collector rethink the wisdom of suing you more than having to spend money. Not even it looking like you can win the case outright.

Conclusion

So go through the process. Chances are good that they’ll either give up or you will have what you need to win by the time you get through. And there’s no other way to get to that point.